IB949 - Investment Management

Module content and teaching

Principal aims

This course provides a theoretical and practical treatment of modern portfolio theory and portfolio management, mainly from an equity market perspective. The course will cover all the steps in the practice of portfolio management; security selection, portfolio construction, risks modelling, trading cost analysis and performance measurement and attribution. Additionally, some more specialized material on asset allocation, international portfolio allocations and currency management will be discussed. The course builds on the core theoretical work in modern asset pricing (i.e. the CAPM, APT and market efficiency) and requires a clear understanding of statistics and theoretical and applied econometrics.

Principal learning outcomes

Students who successfully complete this course will have a deep understanding of the theory and practice of optimally combining securities into portfolios, and some of the issues that a fund manager faces in putting theory into practice. They will be familiar with the theoretical and applied literature on modern portfolio management and investment analysis.